When you have been pre-approved and (amount, affect)

[micheleroll]

Originally Posted by rettogo

I was just as confused. This is our first home purchase and therefore, this whole loan process is confusing and exhausting. We first got a prequalified so we knew what price range we should even consider. We then found a house we loved and went forth with getting preapproved. That all went well, they ran everything through thier system and was told that if everything we provided was accurate and could be proven via documentation, we will be good to go.

Since then we've signed a contract, put a $1000 on the house to take it off the market and the builders and the loan company have us closing by the 31st of this month.

Well to this date, I still don't have an actual yes for our funds. It seems like everyday we are turning in paperwork on top of paperwork and now I'm starting to think somethings wrong. I was under the impression that once you've been preapproved and produced documents, that was money in the bank. Who knew you had to get pre approved to get pre approved?

If everything goes well, I won't be in the market anytime soon. Buying a house is stressful and when you don't know what is going on or completely understand the process, it makes it even more stressful. Good luck to you!

I totally agree with you. Buying a house is very stressful. I just don't understand what the problem is when you give them paper work and more paper work. My thing is they have started building the house. We are suppose to go to closing in June. I'm thinking why would they start building a house if they didn't approve you for it. Wouldn't the builder loose money?

[rettogo]

Originally Posted by micheleroll

I totally agree with you. Buying a house is very stressful. I just don't understand what the problem is when you give them paper work and more paper work. My thing is they have started building the house. We are suppose to go to closing in June. I'm thinking why would they start building a house if they didn't approve you for it. Wouldn't the builder loose money?

Well it depends, they were probably going to build it anyway eventually if you are buying in a community. I do agree that there are a lot of putting the "cart before the horse" type of things going on though. I'm suppose to go and do a final walk through next week and yet.....NO GUARANTEED funds!!! Maybe this is normal but it all seems backwards to me.

[Daddys///M3]

I will say this to both of you. Your broker/banker/LO should be able to explain exactly what is going on and make you either feel at ease with the process or let you know to expect turbulence. Either way, it doesn't sound like your respective LO's have your confidence, and as such perhaps you should plan accordingly.

[rettogo]

I just spoke with my LO and we got final loan approval. Now I thought we had that before but apparently not, we had pre approval. I thought it was all the same but again, it's all spanish. My LO stated we are still going to be able to close by the 31st and that everything is set to go. I still won't feel completely at ease until those house keys are dangling in my hands.

[micheleroll]

Originally Posted by rettogo

I just spoke with my LO and we got final loan approval. Now I thought we had that before but apparently not, we had pre approval. I thought it was all the same but again, it's all spanish. My LO stated we are still going to be able to close by the 31st and that everything is set to go. I still won't feel completely at ease until those house keys are dangling in my hands.

Rettogo, I'm with you on the "getting the keys". I told my husband the exact same thing that I wouldn't feel comfortable until I get the keys in my hand. We haven't even told our family members what we are doing. We'll tell them after we get the keys!!!

[rettogo]

Originally Posted by micheleroll

Rettogo, I'm with you on the "getting the keys". I told my husband the exact same thing that I wouldn't feel comfortable until I get the keys in my hand. We haven't even told our family members what we are doing. We'll tell them after we get the keys!!!

Great minds think alike because we have kept this "hush hush" as well. I just didn't want to have to deal with explaning to anyone why we didn't get the house. Talk about being embarassed. To avoid that, we haven't told anyone either.

[Briolat21]

Talk to your broker/mortgage lender - ask them!! Tell them you are supposed to close in 10 days!!

Process for us (building a new home) - had already been pre-qualified by many other lenders/banks/builders.

Got pre-qualified. Found house style. Got pre-approved. Turned in a SEA of documents (W2, Tax last year, bank statements, stock statements, credit card balances). Every month after that - new bank statement faxed in. Any "gifts" or "funds" to my account had to be validated (sale of old house - funds had to be validated). Checks had to be copied so they could be sent to the broker.

About 2 months into the process I get a letter that says "Congratulations, your loan is approved - i.e. it had cleared underwriting - and I have a 150 day lock. Funny, I had thought it was approved 2 months earlier before they broke ground!!

More bankstatements/check copies. Finally - closing (1.5 months later) - which was 2 days ago. Sign your name 25 times - house is ours!!

It is a ridiculously frustrating process. But, it is these safeguards that hopefully make sure people can afford the homes they are getting into.

Question your broker!! And good luck, I feel your pain!!

[jeannie216]

Originally Posted by micheleroll

Rettogo, I'm with you on the "getting the keys". I told my husband the exact same thing that I wouldn't feel comfortable until I get the keys in my hand. We haven't even told our family members what we are doing. We'll tell them after we get the keys!!!

The best of luck to you. We are selling our home and actually went under contract at the beginning of Jan. This couple beat us down with inspections and price reduction requests and when we said "no more!" they walked away, contract null and void. We went back on the market and 2 weeks later, guess what? They wanted back in. They got denied a mortgage twice and now, after 2 1/2 wasted months with this couple, we're back on the market. Needless to say we have young children and needed to plan so schools were notified, I gave notice at my job, we made our contacts down south for a new residence, etc. Thankfully, everything was reversed and hopefully the next transaction will happen soon and go much smoother.

[rettogo]

Originally Posted by jeannie216

The best of luck to you. We are selling our home and actually went under contract at the beginning of Jan. This couple beat us down with inspections and price reduction requests and when we said "no more!" they walked away, contract null and void. We went back on the market and 2 weeks later, guess what? They wanted back in. They got denied a mortgage twice and now, after 2 1/2 wasted months with this couple, we're back on the market. Needless to say we have young children and needed to plan so schools were notified, I gave notice at my job, we made our contacts down south for a new residence, etc. Thankfully, everything was reversed and hopefully the next transaction will happen soon and go much smoother.

I read your other post about your situation and I can only imagine the amount of stress you've been under. I see you are wanting to move to NC? That's home for me and the people are great there. Good luck to you also and I'm glad you were able to reverse things without it affecting you too much.

[rettogo]

Originally Posted by Briolat21

Talk to your broker/mortgage lender - ask them!! Tell them you are supposed to close in 10 days!!

Process for us (building a new home) - had already been pre-qualified by many other lenders/banks/builders.

Got pre-qualified. Found house style. Got pre-approved. Turned in a SEA of documents (W2, Tax last year, bank statements, stock statements, credit card balances). Every month after that - new bank statement faxed in. Any "gifts" or "funds" to my account had to be validated (sale of old house - funds had to be validated). Checks had to be copied so they could be sent to the broker.

About 2 months into the process I get a letter that says "Congratulations, your loan is approved - i.e. it had cleared underwriting - and I have a 150 day lock. Funny, I had thought it was approved 2 months earlier before they broke ground!!

More bankstatements/check copies. Finally - closing (1.5 months later) - which was 2 days ago. Sign your name 25 times - house is ours!!

It is a ridiculously frustrating process. But, it is these safeguards that hopefully make sure people can afford the homes they are getting into.

Question your broker!! And good luck, I feel your pain!!

Congratulations! I know you are glad it's all done and over with. Understanding the lingo and terms is the frustrating part to me. Just like you mentioned, I thought getting pre approved meant I was already approved. Especially after we produced all the documents they needed. I had no idea that we still had to wait for the underwriter to give FINAL loan approval.

Anyway, hopefully in 10 days I'll be back on this thread sharing my closing story. Thanks for your empathy...LOL.